1. Intel licenced technology to AMD and only AMD.
2. AMD helps spin a new company (consisting of it's old fab business and more) but this company is not a true subsidiary of AMD.
3. Intel did not give this new company the rights to use its IP. Nor does AMD's licence allow it to reliecence Intel's IP.
4. Intel just wants Global Foundries to play by the same rules everyone else does when a company needs to licence Intel's stuff.

its rather simple really, a lot of sites are just blowing it out of proportion.

It is very simple indeed, however you need a slightly corrected timeline:

1. AMD Licensed AMD-x64 to Intel in exchange for certain licensing from Intel.
2. Intel sends Atoms to be made at TMC fab, including AMD-x64 technology.
3. AMD spins off its own fabs to make a new foundry company.
4. Intel complains to AMD, AMD says 'by agreement: if you do it, so can we,' neither can give in without legal mediation as those "people" (I'm sure they're actually just lawyers) doing the talking on either side have no such rights.

Intel can say it one way, AMD another. Who is right depends on reading the agreement, which I haven't done yet.

In any event, if AMD is violating the agreement then so is Intel - which is EXACTLY what AMD says, in very clear and certain legalese ;-)

Given proper wording, it is possible that AMD's assertion (that they could revoke Intel's AMD-x64 license rights without itself losing the right to Intel I.P.) could indeed be true. Not that AMD would want this, it would almost certainly prevent any further licensing deals unless another series of lawsuits were to force Intel's hands. But, it could still possibly be done, in certain situations, by a first breach by either side.